Data suggests that the North American online retail landscape is becoming more competitive as smaller retailers catch up with more established names.
It’s always a good practice in January to reflect on the past year to see where the industry is likely heading for the year ahead and make strategic decisions based on that data.
An excellent place to start is Digital Commerce 360’s ‘2023 Top 1000 Database,’ which ranks North America’s top 1,000 online retailers by annual web sales.
Digital Commerce 360 noted the significance of 2020 when considering online retailers’ performance over the last few years.
2020 was an enormous year for e-commerce. Many online retailers exploded in growth because of the pandemic.
This growth has cooled since then as lockdown rules eased. However, the top 1,000 online retailers in North America are still growing, including a number of lesser-known, emerging online retailers.
Digital Commerce 360 said, “[We] are finally starting to see a level playing field again. Double digit growth is in the near future and now is the time to invest in future gains.”
They suggest that smaller online retailers started to catch up with larger platforms in 2023, and that the online retail landscape became more diverse.
“This year, our 2023 North American rankings feature hundreds of companies outside of the most well-known brands that have made stunning strides in growth.”
This could suggest that North American online shoppers are more confident buying from lesser-known retailers and that the e-commerce industry is becoming more competitive.
Other Key Insights from Digital Commerce 360
- Amazon is $3 billion larger than the 33 companies ranked after them. This is unsurprising and cements the view that Amazon isn’t going anywhere fast despite a growth slowdown.
- Walmart is ranked second place behind Amazon.
- “[The] Top 1000 retailers grew 5.2% in 2022 and collectively sold $1.02 trillion in ecommerce sales last year, accounting for 77.4% of the nation’s total ecommerce sales within the U.S.”
- “The median web sales of retailers ranked in the Top 1000 was $140 million in 2022.”
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